Corporate: OptiComm is the latest acquisition target of growing telco Uniti
Uniti is offering $532m for OptiComm, of which $407m will be in cash and the remainder in the form of Uniti shares.
Half of the acquisition will be funded by a $270m capital raise and a further $150m from a new debt facility. This morning OptiComm’s board gave the deal their blessing.
Uniti first listed in February last year at 20c per share and currently sits at $1.54. It is the most successful IPO of 2019.
Uniti chairman Graeme Barclay said the purchase of OptiComm would deliver “the next phase of growth” for shareholders.
Uniti’s focus is the business-to-business market segment, while OptiComm targets planned lifestyle communities such as retirement villages. It has a contracted pipeline in excess of 150,000 lots and over 70,500 active premises.
Uniti expects the buy will see it propelled into the ASX200 index.
“The Uniti board is confident that we are well placed to significantly grow the fibre footprint and maximise the efficiencies of the combined businesses to drive long-term, sustainable shareholder value,” Barclay said.
OptiComm chairman Allan Brackin said the offer was highly compelling and fully recognised the company’s value.
Shares only rose 4 per cent today, but are up 160 per cent since its IPO last August.
Propel Funeral Partners (ASX:PFP) is seeing a slight benefit from the easing of funeral attendee limits. Its average revenue per funeral rose 8 per cent in May and it is expecting volumes to exceed 13,000 this financial year. It is expecting $110m in total revenue and $32m in operating earnings.
However, Propel reiterated it was not seeing the benefit from COVID-19 some may have anticipated if Australia had been hit worse. It also warned increased awareness about diseases may even cause “a deferral of death volumes into future periods”.
Healthcare company Healius (ASX:HLS) announced it was selling its portfolio of medical centres to BGH Capital for $500m. Healius CEO Dr Malcolm Parmenter said the value of these assets hadn’t been recognised in the share price but the deal enabled shareholders to realise this value.
Plus-size women-focused fashion retailer City Chic Collective (ASX:CCX) announced it was exiting 14 stores where it couldn’t negotiate post-COVID rents with landlords.
The company however was able to negotiate new deals in other locations. Furthermore, CEO Phil Ryan said the company could open new stores where deals could be structured to reflect the current retail environment.